WDC - Western Digital Corporation
| Previous Close | 63.56 |
| Open | 63.69 |
| Bid | 63.58 x 900 |
| Ask | 63.60 x 1100 |
| Day's Range | 62.85 - 63.88 |
| 52 Week Range | 33.83 - 65.31 |
| Volume | 1,083,362 |
| Avg. Volume | 5,646,378 |
| Market Cap | 18.737B |
| Beta (3Y Monthly) | 2.17 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -2.58 |
| Earnings Date | Oct 23, 2019 - Oct 28, 2019 |
| Forward Dividend & Yield | 2.00 (3.18%) |
| Ex-Dividend Date | 2019-10-03 |
| 1y Target Est | 61.79 |
- Business Wire
Western Digital Enables Industry 4.0 Transition With High-Endurance Storage Solutions for Industrial-Grade AI, ML and IoT Applications
Smart Factories and IoT Devices Benefit from Reliable, Low-Power Storage Solutions Built to Thrive in Varied Environments
- Zacks
Western Digital (WDC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Western Digital (WDC) closed at $63.56, marking a -0.55% move from the previous day.
- InvestorPlace
The 7 Best S&P 500 Stocks of 2019 So Far
Stocks have had a good 2019. Through the first half of the year, the S&P 500 was on track for its best year in over two decades. To be sure, gains have been muted in the third quarter. But with the S&P 500 up 20% year-to-date, stocks are still having one of their best years this century.One bullish sign about this rally is that the leadership in the S&P 500 in 2019 is very diverse. That is, the individual stocks which are leading the market higher are not concentrated in one industry -- rather, they are a from a broad array on sectors.That's bullish because it shows that the market rally this year has breadth. You don't just have one boat or one group of boats rushing ahead of the rest. Instead, the whole sea is rising here, and when the whole sea is rising, that is often a dynamic that is tough to stop.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip With that in mind, let's take a look at the best stocks of 2019 so far, and see where these stocks could go next. Chipotle Mexican Grill (CMG)Source: Northfoto / Shutterstock.com Year-to-Date Gain: 85%Through September, the best performing stock in the S&P 500 is Chipotle Mexican Grill (NYSE:CMG).Shares of the fast casual Mexican eatery have rattled off an 85% gain this year, thanks to the company's turnaround gaining impressive momentum throughout the year. Specifically, new management has doubled down on three growth initiatives -- revamping the menu with exciting new options, expanding reach by building out the digital business and re-branding the chain with a new marketing campaign. Those three growth initiatives have all worked, and Chipotle has reported hugely positive comps all year long, which has fueled the huge gains in CMG stock.Going forward, this rally could persist. After all, nothing is wrong with the Chipotle growth narrative. The turnaround is powering full steam ahead, and for the foreseeable future, the company should comp positive and report big profit growth. In theory, those strong numbers should keep CMG stock on its winning trajectory. But I'm concerned about valuation. At 60-times forward earnings, Chipotle stock is one of the most richly valued restaurant stocks I've ever seen -- and I think upward moving fixed income yields could pressure that extended valuation in a big way.As such, while the rally in CMG stock could persist into the end of the year, I don't think it will. Instead, I think CMG stock could give back some gains over the next few months. Hess (HES)Source: Shutterstock Year-to-Date Gain: 74%Through September, the second best S&P 500 stock is Hess (NYSE:HES).The energy company focused on crude oil and natural gas exploration and production has seen its stock rise nearly 75% in 2019 for two simple reasons. First, you have surging oil prices. WTI Crude Oil prices are up more than 25% year-to-date, thanks to improving global economic conditions firming up demand and certain one-off catalysts short-circuiting supply (such as the recent attacks in Saudi Arabia). HES stock has naturally rallied with rising oil prices. Second, Hess owns a 30% stake in a huge oilfield in Guyana that projects to be one of the most lucrative oilfields in recent memory. As this oilfield has inched close towards being operable, HES stock has moved higher.Can the rally continue? I have my doubts. The trailing price-to-sales multiple on HES stock is now at a 2019 high, while the dividend yield is at a 2019 low. Thus, the stock is richly valued by historical standards, meaning investors are pricing in higher oil prices for the foreseeable future and huge upside from the Guyana project. The latter will probably materialize. I'm unconvinced on the former, as it appears countries globally are ready to inject supply where needed to keep oil prices from rising too much. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars As such, while HES stock could continue to move higher from here, further gains will be reliant on oil prices moving higher. Lam Research (LRCX)Source: Shutterstock Year-to-Date Gain: 73%The third best S&P 500 stock through September is Lam Research (NASDAQ:LRCX).Shares of the semiconductor equipment giant have risen by more than 70% this year as investors have realized that the semiconductor downturn everyone was expecting in 2019, isn't as bad as feared. That is, LRCX dropped big in late 2018 to multi-year lows and a dirt cheap valuation as investors anticipated that a global economic slowdown would kill semi equipment demand in 2018/19. It has. But the damage has been relatively muted and a recovery already appears to be underway. As such, LRCX has benefited from both multiple expansion and upward estimates revisions in 2019 - the sum of which is how Lam Research stock has rattled of a 73% YTD gain.LRCX should continue to move higher from here, albeit at a slower pace. That's because only one of the stock's two growth drivers will remain in play. The multiple expansion tailwind has dried up, since at 17-times forward earnings, LRCX is trading at its richest valuation in years. But the upwards estimates revisions tailwind has not dried up. Global economic growth trends are improving, and as they continue to improve over the next few quarters, the semi market should continue to bounce back - which should lead to analysts upping their forward revenue and EPS estimate for LRCX.Big picture - while the best of the LRCX rally is in the rear-view mirror, this stock still has some gas left in the tank to head higher over the next few months. Copart (CPRT)Source: Shutterstock Year-to-Date Gain: 72%The fourth best S&P 500 stock through September is Copart (NYSE:CPRT).While the U.S. auto market may be having a tough time in 2019, online car auction company Copart is not. The company has rattled off three straight strong quarters in 2019. Revenue growth has accelerated higher through each of those quarters. Margins are powering higher, too. Profit growth has been robust. In other words, Copart has been firing on all cylinders in 2019, despite a weak auto market backdrop, and that divergence has helped CPRT stock soar by more than 70% this year. * 7 Tech Stocks You Should Avoid Now This rally has more firepower left. Copart has leveraged its unique value prop in the auto industry to transform into a steady 20%-plus revenue and profit grower. For that 20%-plus revenue and profit growth, CPRT stock trades at just 30-times forward earnings. That's a fairly reasonable multiple to pay for 20% growth. So long as the U.S. economy remains healthy and continues to support 20%-plus profit growth at Copart - which it should for the foreseeable future - then CPRT stock has room to move higher. Western Digital (WDC)Source: Valeriya Zankovych / Shutterstock.com Year-to-Date Gain: 71%The fifth best S&P 500 stock through September is Western Digital (NASDAQ:WDC).Owing to its broad exposure to favorable growth trends in data creation, accumulation and storage, data storage giant Western Digital has been a Wall Street favorite for a long time. In 2018, Western Digital lost Wall Street's favor as growth turned sharply negative amid a broad data storage market slowdown. WDC stock shed more than 70%. But in 2019, there have been signs of improving conditions in the flash market, and the consensus belief is that a trough is close. As Western Digital has neared this inflection point, investors have gobbled up shares in anticipation of a big recovery in 2020.Will the rally continue? It hinges entirely on whether or not that big recovery in 2020 actually materializes. If it does, WDC stock could fly much higher - the stock is still 40% off its early 2018 highs. If it doesn't, WDC stock could give back most of its 71% year-to-date gain. Fortunately for WDC bulls, I think the big recovery will materialize, given that global economic conditions are improving, trade tensions are easing, global business confidence is improving, and fiscal stimulus is on its way to help juice economic activity.Consequently, while WDC stock is unequivocally a high-risk, high-reward play here, I think the reward part has more merit than the risk part at this point in time. KLA (KLAC)Source: Shutterstock Year-to-Date Gain: 70%The sixth best S&P 500 stock through September is KLA (NASDAQ:KLAC).Much like Lam Research, KLA is a semiconductor equipment stock which has materially outperformed in 2019 because the slowdown in the semi market hasn't been as bad as feared and looks to be over pretty soon with sizable catalysts on the horizon, such as 5G. As such, the consensus belief is that KLA's growth trajectory will materially improve over the next few years, and investors are gobbling up KLAC stock ahead of that big improvement.The rally continuing here will depend on how much KLA's growth trajectory improves. At present, KLAC stock trades at 16-times forward earnings, which is a multi-year high valuation for this stock. In order to justify that above-average multiple, revenue and profit growth need to accelerate meaningfully from here. If they don't, KLAC stock could give back a bulk of its gains. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Fortunately for KLAC bulls, I think revenue and profit growth will accelerate meaningfully, as 5G and IoT tailwinds converge on improving global economic conditions in 2020 to create a robust semi equipment spending environment. If that does happen, KLAC stock should stay in rally mode for the foreseeable future. Advanced Micro Devices (AMD)Source: Sundry Photography / Shutterstock.com Year-to-Date Gain: 68%Last on this list of best S&P 500 stocks of 2019 is Advanced Micro Devices (NASDAQ:AMD).Shares of CPU and GPU company AMD have been red hot for a while now. In 2018, this was the S&P 500's top stock. In 2019, it's the seventh best performing stock. This consistent strength comes down to one thing - market share expansion. Over the past few years, AMD - a historically small and largely irrelevant player in the CPU and GPU markets - has dramatically increased its presence in the CPU and GPU markets, and as the company has, revenues and profits have marched meaningfully higher. This big growth has powered equally big gains in AMD stock.This rally should continue into 2020. At present, AMD projects to keep winning share in the CPU and GPU markets for the next several quarters. So long as the company keeps doing this, growth rates will remain robust, and investors will salivate over the long term potential. That is a winning combination which should ultimately keep AMD stock on a winning path.Thus, when it comes to AMD stock, it's all about market share expansion. So long as this company keeps winning market share, AMD stock will stay on an uptrend.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post The 7 Best S&P 500 Stocks of 2019 So Far appeared first on InvestorPlace.
- Zacks
Seagate Prices Cash Tender Offers to Reduce Refinancing Risk
Seagate (STX) is benefiting from increasing traction for mass storage solutions across its edge and enterprise end markets.
- American City Business Journals
Western Digital to expand in Roseville after Kazan acquisition
San Jose-based Western Digital Corp. will maintain Kazan Networks’ Roseville operations following its recent purchase.
- Market Realist
MU and WDC: Memory Stocks Rally on Analyst Optimism
From June 20 to September 16, memory stocks Micron and Western Digital rose 47% and 59%, respectively. Bullish analysts expect these memory stocks to rise.
- InvestorPlace
5 Great Dividend Stocks to Buy From the Tech Sector
[Editor's note: "5 Great Dividend Stocks to Buy From the Tech Sector" was previously published in June 2019. It has since been updated to include the most relevant information available.]When most investors hunt for dividend stocks, the technology sector is often not on their shopping list. The perception is that most technology firms need and are forced to plow every extra cent back into their businesses in order to fuel growth. As a result, tech stocks are seen as a strictly capital appreciation element for a portfolio.However, this isn't true at all. Tech stocks make for amazing dividend stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe reality is, that many firms in the tech sector are cash flow and profit machines. Thanks to surging revenues and high margins, mature tech firms simply mint money at this point. So much, in fact, that many have too much money sitting on their balance sheets. To rid themselves of that excess cash, many tech stocks have started paying some hefty dividends. And they have been growing those dividends by leaps and bounds too.In the end, when looking for dividend stocks, the technology sector should be the first stop for portfolios rather than an afterthought. But which tech stocks have what it takes to be considered good dividend stocks as well? * 7 Momentum Stocks to Buy On the Dip Here are five that are worthy of consideration. Cisco (CSCO)Source: Shutterstock Dividend Yield: 2.8%No list of dividend stocks in the tech sector can be written without the firm that started the modern trend of payouts from tech. We're talking about Cisco (NASDAQ:CSCO). CSCO started paying a token dividend back in 2011 and hasn't looked back, growing that payout by more than 480%. And it's easy to see why Cisco has become such a dividend stalwart.Sensing a slowdown in networking, router and physical equipment sales, CSCO started to pivot into more software and services. Cloud computing, cybersecurity and other such products have quickly become big-time money makers for the firm. Perhaps, more importantly, these sales come with higher margins, reoccurrence and the ability to add value/upsell networking transactions. "We just built you this massive network for your cloud operations. Would you like us to secure it as well?"Because of this, CSCO has become a cash flow giant.In fiscal Q3 alone, the firm managed to generate a 16% jump in operating cash flows once adjusting to overseas taxes paid for the Tax Cuts and Jobs Act. Meanwhile, cash on CSCO's balance sheet has swelled to more than $34.6 billion.With sales of software/services continuing to rise, CSCO should be able to keep bringing in the cash for the long haul. Even better is that the growth in data centers and 5G networking is once again boosting equipment sales.At the end of the day, Cisco is one of the best dividend stocks to buy -- tech sector or not. Seagate Technology (STX)Source: Shutterstock Dividend Yield: 4.5%Like previously mentioned Cisco, Seagate Technology (NASDAQ:STX) may seem like a relic from the dot-com days. However, STX has managed to see plenty of new life in recent years. The key is data center demand is making one heck of a dividend stock.For many years after the dot-com bust, STX struggled. The rise of mobile and tablet computing crimped PC sales. At the same time, flash-based solid-state drives (SSD) hit Seagate's platter-based hard disk drives (HDDs) right in the wallet. SSDs are faster, smaller, and more power-efficient. Manufacturers liked these facts and started favoring them in PCS and other devices. As a result, STX stocks stagnated and was looking like a lost cause.That is until cloud computing and data center demand started to take over.It turns out, those building out networks and data centers prefer capacity over speed. That makes HHDs much better suited for this application. Since Seagate dove into SSD production -- like rival Western Digital (NASDAQ:WDC) -- it's been able to reap the full benefits of this expansion. In fiscal 2019, STX managed to produce $1.8 billion in cash flow from operations and $1.8 billion of free cash flows from higher drive demand. * 7 Momentum Stocks to Buy On the Dip And naturally, Seagate has been rewarding investors with that extra cash. Today, shares yield a tech-sector high 4.5%. Apple (AAPL)Source: Yuanbin Du Via FlickrDividend Yield: 1.4%$95 billion.That's a big number. It also happens to be the amount of cash Apple (NASDAQ:AAPL) has on its balance sheet. This makes the consumer tech company one of the most cash-rich firms on the planet. That fact alone could make it a big buy. But the fact that Apple has quickly become one of the leading dividend stocks and continues to increase its buyback programs makes it a big buy right now.The key is that Apple has been able to use its vast cadre of devices to sell apps, music, movies and games. This helps Apple produce plenty of cash flows. Meanwhile, its shift into various services and other add-ons for its customers have only enhanced its cash flows further. So, even though AAPL has been handing out plenty of cash to investors, its over cash balance continues to hover over that $200 billion mark. Last year, Apple spent more than $74 billion on buybacks and raised its dividend by roughly 5.5%.With new devices hitting the markets and a focus on building out content for those devices, Apple should have no problem growing that cash balance far into the future. That should make dividend investors happy. And while there are some risks with revenue slowdowns and Chinese trade, that massive cash pile provides such a huge cushion to keep the dividend grow going.With that, Apple is still one of the best dividend stocks to buy. Equinix (EQIX)Source: Shutterstock Dividend Yield: 1.8%One of the biggest trends in tech continues to be the growth of cloud computing and mobile access. Any time you use an app to go shopping or check your bank balance, you're tapping into a data center far away. It turns out that's a very good business to be in. Just ask Equinix (NASDAQ:EQIX).EQIX is the world's largest owners of these data centers -- with more than 200 under its umbrella. The key is that EQIX doesn't actually own or really operate the centers, it's a real estate investment trust (REITs). That is, it owns the specialized buildings and rents space inside to firms to build their required computing needs. It's essentially an apartment building owner for computers.Given the continued surge in data center demand from e-commerce, cloud computing, and mobile operations, EQIX has been sitting pretty over the last few years. In Q2, its net income jumped 22% versus Q1. This continues the REIT's string of strong performance.The data center giant has paid plenty of special stock dividends to its shareholders and has managed to grow its cash payout by 45% since 2014. * 7 Momentum Stocks to Buy On the Dip With continued demand for data centers assured, EQIX is the best dividend stock to play tech's backbone. Shares currently yield 1.8%. First Trust NASDAQ Technology Dividend ETF (TDIV)Source: Shutterstock Dividend Yield: 2.4%Considering that this list didn't even touch such amazing tech dividend stocks like Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) or even Texas Instruments (NYSE:TXN), one approach could be to think broad. There are plenty of tech ETFs on the market, but only the First Trust NASDAQ Technology Dividend ETF (NYSEArca:TDIV) tackles the sector with a dividend approach.The $1 billion fund tracks an index that screens for tech stocks that have paid a regular or common dividend within the past 12 months and haven't cut the payout either. This provides exposure to all the top names in tech that pay dividends -- currently at 92 different stocks. This includes all the names on this list as well. That focus also throws off a surprising amount of income as well. Today, TDIV has an SEC 30-day yield of nearly 3.17%. That's' better than the S&P 500 and current yields on Treasury bonds.And as a total return component, TDIV has been top notch. Since its inception in 2012, the ETF has roughly doubled in share price and managed to produce an average annual return of around 12%. That's around the same as the S&P 500. The key is that TDIV has been less volatile than the broader index. Less volatile than all the tech stocks in the broader index as well. The secret is in the power of the dividends.All in all, for investors looking to score some hefty dividends from tech and take advantage of the sector's growth, TDIV could be the best way to capture those benefits.Disclosure: At the time of writing, Aaron Levitt did not have a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post 5 Great Dividend Stocks to Buy From the Tech Sector appeared first on InvestorPlace.
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5 High-Flying Large Cap Tech Stocks With Fat Dividend Yield
Here we discuss five top-ranked large cap tech stocks for dividend investing.
- InvestorPlace
Why Does Micron Stock Have Analysts Falling in Love All Over Again?
Ask a lot of Wall Street analysts what to buy today, and many of them will say Micron Technology (NASDAQ:MU). On the surface the memory maker looks dirt cheap for a tech stock. The price-earnings ratio is below 6, and price to sales is just 2. Assuming the inventory recession of last year is over, results could improve sharply. Even if they don't, MU stock is still a bargain.Source: Charles Knowles / Shutterstock.com But there's a reason Micron sells at 6x earnings. Micron's history is one of booms and busts, and this bust may not be over. That's because the good times have brought out some big new suppliers.So, buy or sit?InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Buy ArgumentThe buy argument starts with the most recent results, delivered in June. Net income of $1.2 billion, or $1.05 per share on revenue of $4.79 billion was "better than feared." Chip prices are stabilizing and could start to rise by the end of the year.Micron next reports earnings September 26. The consensus estimate is for net income of 42 cents per share, or about $500 million, on revenue of $4.5 billion. There is also a "whisper number" of 49 cents per share. * 7 Stocks to Buy In a Flat Market Analysts are expecting an upside surprise. They have set a low bar they expect the company to clear handily. The stock is still "priced for disaster" as our Thomas Niel wrote recently. Whether this is the bottom or next month is the bottom is less relevant than the idea that you can see the bottom. The Hold ArgumentWhile analysts have been boosting their price targets on the stock, $52-$55 isn't far from the $50 and change the stock is due to open at this morning.That's why the sages at InvestorPlace are telling bulls to be careful. Be careful in the short run, writes Will Healy. It's an "ugly road" to the top, writes Luke Lango, who recommended the shares at their bottom of $35.The concern, as always, is China. It's not just the trade war, with its tit-for-tat taxes. It's also China's stated goal of becoming independent of American chip suppliers. This starts with Micron. The U.S. government formally charged two Chinese companies with stealing Micron's intellectual property last year. Micron CEO Sanjay Mehotra was reportedly in China recently, meeting with one of the companies that were charged.There's also Intel (NASDAQ:INTC). Intel and Micron ended their memory partnership last year. Intel has opened a new front in the competition with new packaging, tying memory more closely with processing, including graphics processing.Samsung remains the biggest memory producer, with twice Micron's market share. Another Korean company, SK Hynix is also a bigger supplier than Micron. Bottom Line on Micron StockMy own optimism for Micron stock is based in large part on Mehotra, who became CEO two years ago. This came after a long career building Sandisk, now part of Western Digital (NASDAQ:WDC). * 10 Stocks to Sell in Market-Cursed September This is not Mr. Mehotra's first rodeo. He's like a great football coach you got because his previous team was sold.Mehotra has been making Micron more international, increasing hiring in India. Micron has the cost structure to compete against anyone, even the Chinese.While investors are getting ahead of themselves in the near term, the longer term remains bright. There is a super-cycle for memory. It began with phones, PCs and even cloud centers. Chip memory can also go into the tiny spaces needed to automate everything from factory equipment to refrigerators to traffic lights.If you have a five-year time horizon for a tech investment, you can buy Micron now. I said that months ago. It's still not too late.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Why Does Micron Stock Have Analysts Falling in Love All Over Again? appeared first on InvestorPlace.
- Zacks
Western Digital (WDC) Outpaces Stock Market Gains: What You Should Know
Western Digital (WDC) closed at $64.70 in the latest trading session, marking a +0.62% move from the prior day.
- GuruFocus.com
Wall Street Edges Higher Wednesday
Dave & Buster's Entertainment declines after reporting earnings Continue reading...
- Yahoo Finance
New Stocks on the Argus Focus List
Argus Research has released its latest 30-stock Focus List. Find out what stocks have been added.
- GuruFocus.com
Michael Burry's GameStop Tumbles on Weak Comp Sales Outlook
'Big Short' investor-backed company reports worse comp sales decline in second quarter Continue reading...
- Business Wire
Western Digital Accelerates Leadership in Next-Generation Data Center Architectures With Acquisition of Kazan Networks
Western Digital Corp. (WDC) and Kazan Networks announced today that Western Digital has completed the acquisition of Kazan Networks, a provider of industry-leading NVMe™-over-Fabric (NVMe-oF) ASIC and adapter products for next-generation data center architectures. Financial terms of the transaction were not disclosed.
- GuruFocus.com
Michael Burry's South Korean Stock Picks
Big Short investor says stocks in the market are 'almost always cheap' Continue reading...
- Yahoo Finance
Argus Daily Technical Analysis: Sentiment Improves with Recent Breakout
Last week, Argus changed its intermediate-term assessment to Bullish after several major indices broke above the top bands of their recent trading ranges. Breadth also has been positive, with the advance-decline line near an all-time high and up-down volume similarly skewing "up."
- InvestorPlace
Improved Demand Could Boost Micron Stock
Micron (NASDAQ:MU) stock has traded sideways since my last article on MU. On July 22, MU stock traded around $47 per share. MU took a dip in early August, before rebounding to its current price of nearly $49 per share. With NAND and DRAM chip prices expected to climb, could Micron stock be turning a corner? MU continues to trade at a low valuation. Investors expect its earnings to continue to drop. But an improving macro environment could be just the ticket to drive Micron stock higher.Let's take a closer look at MU stock and see if it's worth buying today.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Industrial Stocks to Buy for a Strong U.S. Economy Higher Chip Prices Are a Good Sign for MU StockThe memory-chip space may be at the dawn of a turnaround. Analysts anticipate better futures for both Micron and its rival, Western Digital (NASDAQ:WDC). Deutsche Bank analyst Sidney Ho raised his price target on MU stock to $55 per share. He believes the market for DRAM could improve further, going into the upcoming fiscal year.Another analyst, Mizuho's Vijay Rakesh, also is also bullish on Micron stock. He raised his price target on MU to $50 per share. Rakesh pointed out that NAND chip prices have improved since July. He believes Micron could beat average estimates when it announces its earnings on Sept. 26.Other news crumbs point to a memory-chip rebound. Memory-module supplier Adata Technology sees DRAM prices rebounding in the short-term, primarily due to seasonal demand. As the holiday season approaches, smartphone makers are ramping up production. But is this short-term trend the start of something big? Also important to consider is a looming, potential recession. And of course, there is still the U.S.-China trade war to contend with.Investors feared the Hong Kong protests would cause the trade war to deteriorate further. But with things cooling off, shares have rallied. However, we aren't out of the woods just yet. With both countries wanting to "win" the battle, it could be a long time before a deal is made.And MU is highly levered to China, particularly Chinese smartphone maker Huawei. China represents 50% of Micron's business. 17% of its revenue comes from Huawei, which is caught in the cross hairs of the trade conflict.As a result of these factors, Micron stock trades a at low valuation relative to the market. But is this discount justified? Let's take a closer look at the valuation of MU stock. Compared to Peers, Micron Is CheapMicron stock trades at a forward price/earnings ratio of 9.1. The company's enterprise value/EBITDA (EV/EBITDA) ratio is 3.3. Compare that to Western Digital. The latter company has a forward P/E of 21.5. It has an EV/EBITDA ratio of 12.3. While Western Digital is somewhat different from Micron (WDC does not sell DRAM), both companies have similar macro headwinds. WDC is priced for a turnaround. But MU stock remains priced for a worst-case scenario.MU is also materially cheaper than other types of semiconductor stocks. AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA), which both swell graphics processing units, trade at significantly higher forward P/E and EV/EBITDA ratios. They have higher valuations than MU stock even though they are also getting hit with supply gluts and sales declines. But MU is a more cyclical company, and demand for GPUs is increasing more rapidly than demand for Micron's chips.However, the boom-and-bust nature of Micron stock could create opportunity. Investors can buy Micron stock at the bottom of the cycle and sell it when its results beat expectations. MU Is a Solid Short Term Bet, If Nothing ElseAt first glance, MU stock looks like a value trap.. But the DRAM and NAND markets could rebound. With an improved demand picture, investors could drive Micron stock higher. However, there are many caveats to this play. The U.S.-China trade war could accelerate. The rumored recession could finally emerge.Another caveat is that MU stock is likely not worth holding over the long-term. MU is a classic cyclical play. Investors should buy it when NAND and DRAM are down, and sell it when market demand picks up. But that's easier said than done.Lacking the growth potential of more specialized chip names, MU is likely not a stock that's going to double, triple, or quadruple. However, for contrarian investors, Micron stock may just be the play. A better entry point could emerge after its recent rally dissipates. MU stock is worth watching.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post Improved Demand Could Boost Micron Stock appeared first on InvestorPlace.
- GuruFocus.com
Western Digital Corp (WDC) EVP, Chief Legal Officer & Sec Michael Charles Ray Sold $5. ...
EVP, Chief Legal Officer & Sec of Western Digital Corp (30-Year Financial, Insider Trades) Michael Charles Ray (insider trades) sold 92,043 shares of WDC on 09/05/2019 at an average price of $59.99 a share. Continue reading...
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The Zacks Analyst Blog Highlights: Facebook, Mastercard, NIKE, Western Digital and Phillips 66
The Zacks Analyst Blog Highlights: Facebook, Mastercard, NIKE, Western Digital and Phillips 66
- TheStreet.com
Memory Fundamentals for Micron, Western Digital to 'Drive Upside,' Analysts Say
Cowen analysts think a gradual rebound in memory chip prices could help memory makers' results as soon as later this year.
- Simply Wall St.
How Much Are Western Digital Corporation (NASDAQ:WDC) Insiders Taking Off The Table?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...
- Investopedia
Micron Retests Reaction Highs as Pricing Pressure Eases
Micron shares broke out from reaction highs during Thursday's session following bullish analyst comments on DRAM and NAND price trends.
